Ruto’s Decision To Sign The Privatization Bill Into Law Marked Yet Another Milestone Of His Administration
The Mt Kenya Times 
President William Ruto
By: Joseph Mutua Ndonga
Worth Noting:
- The Privatization Bill originated from the cabinet in line with the rule of collective responsibility.
- This reaffirmed the commitment of President Ruto to walk the talk. This is in terms of following the dictates of the constitution and law to the letter and spirit. The Bill is now the law after President assented to it a few days ago.
- The value of at least 11 richest State Corporations and Agencies stands at Sh6 trillion. According to the Finance Law 2023, 10 of them have been lined up for privatization
- It is worth noting former President Mwai Kibaki was a renowned economist but he failed to resuscitate them.
During the electioneering period, the mind of United Democratic Alliance (UDA)/ Kenya Kwanza presidential candidate William Ruto was very clear.
If he wins the elections, he will give priority to the issue of privatization of the loss-making State Corporations and Parastatal plus those that had already collapsed and shut down.
The leadership of the previous governments fully bore the brunt.
They just watched helplessly as these state entities crumbled down due to four main reasons: High levels of corruption, mismanagement, laxity and don’t care altitudes. These vices would be committed by big fish entrusted to manage them.
To make the matter worse, the previous governments resorted to bailing out the entities.
Billions of shillings of taxpayers were being pumped but none of them will get back to its feet. Kenyans would not get value for thier hard-earned monies. As such, they would end up being the biggest losers.
For Dr William Ruto, he had conceived a workable plan which would be a game-changer in terms of changing this narrative. God heard his prayers and he won the elections.
He knew the power to make this decision lied with members of the National Assembly.
He was however optimistic that he will succeed to lobby members to support and adopt this proposal.
The Privatization Bill originated from the cabinet in line with the rule of collective responsibility.
This reaffirmed the commitment of President Ruto to walk the talk. This is in terms of following the dictates of the constitution and law to the letter and spirit.
The Bill is now the law after President assented to it a few days ago.
The value of at least 11 richest State Corporations and Agencies stands at Sh6 trillion.
According to the Finance Law 2023, 10 of them have been lined up for privatization
It is worth noting former President Mwai Kibaki was a renowned economist but he failed to resuscitate them.
He was unable to deal with vested interests which were out to make a kill.
Reason? The political class played a key role in the appointment of the chairpersons and chairmen of these State Corporations.
As a result, the holders of these offices owed their loyalties to them. This cleared the way for each to dip their fingers into cookie jar and get a share of the looting.
Kenya Cooperative Creameries (KCC), Kenya Meat Commission and pyrethrum Ginneries were among profit making factories that had collapsed.
Given this background, President William Ruto is on the right course.
Having served the previous governments, he understands where the problem lies.
Once advertised, the bidders’ history should be thoroughly scrutinized.
The two main considerations should be. First, the proprietors of the firms that qualify have the interest of the Kenyan people at heart.
Secondly, the investors have success stories of managing and turning around the fortunes of similar entities that had been run down by the state.
You would expect the multinational companies to buy some of the State Corporations.
For them, their success stories would go beyond the border.
Besides, the government would be expected to review the tax regime and enact laws that will attract both local and foreign investment.
As I conclude, allow me to say this. The good thing with privatization is that this creates room for competition.
So, the new owners will work very hard. This is because they want to make profits out of this. They know the Kenya government will also collect a huge chunk of monies as taxes.
Again, if the entity collapses, they will become the biggest losers. They will not only lose the capital but also the assets which they had aquired through sweat.
To avoid these pitfalls, I’m sure they will manage the entities in a professional, disciplined and precision manner.
Joseph Mutua Ndonga is a writer and political analyst based in Nairobi
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